Can I trade at night with my day job? BetterTrader co Blog

In general, specific months as individual units of time don’t carry general importance for trading in the forex market. Instead, it’s better to look at them as groups of months that make a “period” more desirable for trading during a year. This is yet another general rule, however, and you can expect certain months in certain years to be of crucial importance due to political shenanigans. These phases are the initial high volatile phase, the cooldown phase, and finally, the market’s second volatile phase. Now that we’ve sorted the optimum hours to trade in each day let’s complement that with figuring out what are the best days of the week to trade forex. This way we can enhance our previously figured hours and use them on these days to make the potential for more profits.

Do all GBP pairs move together?

While the pairs won't always move in exactly the same direction, they do move mostly together. In comparison, the GBP/USD and EUR/GBP​ have a strong negative correlation at -90, meaning they move in opposite directions much of the time.

We all have busy lives, so it’s best to buy something that will save you time on daily tasks instead of wasting hours weekly. We’ve gone through a good bit of information but really, it’s all quite straightforward. You can start off by getting organized – when creating your trading schedule, know exactly when and which markets are overlapping. Each data point enumerated is undergoing volatile movements, but in the short haul, will strengthen traditional haven currencies such as the U.S. dollar, the Japanese yen, the Swiss franc, and gold. The study goes on to show that there is a large discontinuity in these trading variables around zero past week returns. In other words, traders tend to dramatically increase their trade size after they’ve achieved a couple more wins than losses.

Technical traders utilize analysis tools to identify opportunities using statistical trends, price movement, and momentum. Offer technical traders the tools needed to identify these opportunities and create an effective strategy – some better than others. London also plays a significant role in currency fluctuations because Britain’s central bank, the Bank of England , sets interest rates and controls the monetary policy of the GBP. It is important for forex traders to stay on top of the BOE’s changes because it not only impacts the Sterling Pound , but other currency pairs too, like the EUR which is closely linked to the Pound. The United States dollar is the most commonly traded currency in the world, and therefore most major forex pairs include the USD as the base or quote currency. When combined with other currencies from some of the world’s biggest economies, including China, Japan and the United Kingdom, these are seen as major crosses.

Best Time to Trade Forex in the U.S. 👍

Although volatility creates opportunities for traders, it also creates risk. Therefore, at least until you gain experience and confidence, it’s best to trade during less emerging market local currency bonds risky times of the day. USD to EUR is a shorthand for “conversion of United States dollars to euros,” It is one of the world’s most widely traded currency pairs.

Which currency pair is the least volatile?

The least volatile currency pairs are generally the majors. They are the currency pairs which have historically been the most popular among traders. These pairs include EUR/USD, USD/JPY, GBP/USD and USD/CHF.

Like many other investments, you can earn significant profits, but you could also suffer losses. Certain economic data that can move the market has a regular release schedule. Key economic data full service broker definition include employment figures, Consumer Price Index , trade deficits, and consumer confidence, and consumer consumption. Knowing when this news is set for release can help you plan when to trade.


The debate on which ones are truly the best month to trade forex rages on among traders. There are many different theories on when it is best to trade forex in general, as well as theories regarding when it is best to trade specific currency pairs in general. In this article, we will go over why time matters in forex, and then we will highlight the best time and best months to trade forex and more. If you can’t trade during the most active times in the USD/JPY, then look at trading other pairs, such as the euro/U.S.

best currency pairs to trade at night

Spread is the distinction between the offer cost and the asking cost. This cost is a commission for the specialists on which traders are trading for their benefits. In the event that your offer cost is $40 and you ask cost is $25, at that point the spread cost or the commission of the agent is $15 and this sum is gotten by the dealers. We spoke about news releases potentially having a powerful effect on a trading session briefly earlier. When an important statement is released relating to economic data – especially if it contradicts the predictions – currency can rise or fall in value in the blink of an eye. All-in-all, once you prepare appropriately, understand the basics, and open an account with a quality forex broker, you will be on the right track.

What should you consider before trading forex at night?

Trading CFD’s on margin carries a high level of risk, and may not be suitable for all investors. Overnight Interest Sell/Buy – The overnight interest debited/credited in daily % terms for each instrument. Standard Spread – The difference between the BID & the ASK price quote for each instrument under normal market conditions. Develop your own trading rules – Trading is a relatively personal thing. It is important to set your own rules which will help you know your limits for buying and selling. Being aware of your limits will help you avoid taking unnecessary risks.

In fact, this pair exhibits the highest volatility, along with being the second most commonly traded currency pair that includes the Yen after USD/JPY. The most-traded forex pairs in the London session include GBP/USD and EUR/GBP. This is most apparent once the New York and London sessions overlap – and seeing as how the European session has almost identical opening times as London’s does, this is all the more pronounced. Below are some frequently asked questions and answers on the best currency pairs to trade at night. Choose which currency pair you would like to trade, either from our most traded currency pairs list or a more exotic pair. Currency pairs​​ measure the value of one currency against another.

The exchange rate between the New Zealand dollar and the US dollar may be influenced by the country’s export market performance. Increases in global dairy and farm prices may boost the economy, which influences the currency’s value. The USD/JPY currency ticker displays the US Dollar versus the Japanese Yen. The Dollar-Yen is the second most traded currency pair, behind EUR/USD, and is a barometer for Asian and worldwide economic health.

There is also a strategy for part-time traders who pop in and out of work . These brief but frequent trading periods may lend themselves to implementing a price action trading strategy. Price action trading means analyzing the technicals or charts of the currency pair to inform trades. The AUD/JPY pair might also work well for part-time traders available during the 5 p.m. Let’s say, for example, though that you want to make things a lot simpler for yourself.

Learning from the Elites: What Time Do Banks Trade Forex?

Additionally, if you want more products to add to your collection, our list of the best currency pairs to trade at night on the market is a great place to start. The Australian dollar is Australia’s official currency and the world’s sixth most traded currency pair. The value of the AUD is strongly linked to the CAD value due to the economies of Australia and Canada’s interdependence.

But if you’re looking to maximize your profit potential, the three-hour window between 12 p.m and 3 p.m. Has historically provided the highest level of volatility for this specific pair. Trading forex at night is a great way to make both short-term and long-term profits. To determine the best nighttime trading pairs, we will again assume that UTC is your go-to timezone. This means that there are not only proper hours to trade but also proper days in a week as well as proper weeks in a month, and finally, proper months during a calendar year.

Some forex brokers focus on offering quality research tools and data to help with this. With all of that said, trading hours aren’t always the key to profit. Forex traders should tread lightly in this sense because trades usually involve high stakes – sometimes leverage rates can be as high as 1000 to 1. The JPY/AUD pair is highly liquid during the overlap of the Sydney and Tokyo sessions.

Which currency pair is most predictable?

1) AUD/USD: The Aussie dollar has been in the top rankings of predictability for several years, and for good reasons. This currency pair tends to travel in uptrends and downtrends which are easily defined, and when it moves out of them, the change of direction is abrupt and clear.

For this reason, the GBP/USD pair is almost universally known as one of the most profitable currency trading pairs in the forex market. Just because the global foreign exchange market is open 24 hours a day, that doesn’t mean every one of those hours is worth trading in. The best day traders don’t want just “acceptable hours” to trade; they want to be trading the best hours of the day—those that offer the best bang for their buck. To be efficient and capture the largest intraday moves day traders hone in on, traders should focus only on specific hours of the day. The pair’s long trend movements serve as one of the great advantages of swing trading EUR/CHF, allowing traders to use technical indicators to identify opportunities early in their development.

International currency markets operate in multiple time zones and can be easily accessed at any time. It connected with numerous banks, commercials, funds, government facilities, and of course, Forex brokers and investors. CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. Between 74-89% of retail investor accounts lose money when trading CFDs. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.

Open a live account to start trading straight away or practice first with virtual funds on our demo trading account. Get tight spreads, no hidden fees and access to 12,000 instruments. You can open up different accounts xcritical such as standard, VIP, Nano and Cash, and use the most up-to-date MT5 trading platform. I look to bring back elegance and decency to the art of producing audience-friendly content, one article at a time.

Each individual currency largely depends upon its interactions with other countries and the exports it produces. EToro USA LLC; Investments are subject to market risk, including the possible loss of principal. Two major events that have significantly influenced the price of the GBP in the last decade. During the years 2007 through 2008, the price of GBP wildly fluctuated due to the worldwide influence of the Great Recession.

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